How to... prevent insider fraud

The Association of Chief Police Officers recently estimated that fraud costs the UK economy around £20 billion a year and that most fraudulent acts are committed by employees. Whether it’s criminal gangs infiltrating firms to commit insider fraud or the tendency for more people to commit criminal acts because of personal and financial stress, it is no surprise that the number of internal fraud cases reaching the courts is high.

The volume of background checks carried out by Experian increased by 4 per cent in 2009, against a slowdown in recruitment, demonstrating a tightening-up in staff vetting. And while it is crucial to deal with this issue in the recruitment process, to truly safeguard against insider fraud HR needs to maintain an element of screening throughout the employment contract.